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MQM 227 EXAM 1

Terms in this set (62)

Which of the following statements is incorrect?
A. No matter what you do, you will interact with the operations function
B.Every decision is cross-functional in nature.
C. Operations management deals with the production of goods and services.
D.Non-profit agencies, service industries, and government services are not managed by operations managers.
D. Non-profit agencies, service industries, and government services are not managed by operations managers.
Which of the following statements is correct?
A. In manufacturing but not service industries, the following inputs are transformed into outputs in an efficient and effective manner: raw materials, labor, and capital.
B. In both manufacturing and service industries, the following inputs are transformed into outputs in an efficient and effective manner: raw materials, labor, and capital.
C. In manufacturing but not service industries, the following outputs are transformed into inputs in an efficient and effective manner: raw materials, labor, and capital.
D. In both manufacturing and service industries, the following outputs are transformed into inputs in an efficient and effective manner: raw materials, labor, and capital.
B. In both manufacturing and service industries, the following inputs are transformed into outputs in an efficient and effective manner: raw materials, labor, and capital.
If you were to pursue a career in operations management, which organization would you most likely join?
A. APICS (aka ASCM)
B. ASQ
C. IMA
D. ASOPM
A. APICS (aka ASCM)
Which of the following statements is incorrect?
A. By understanding value, operations can maximize customer value while optimizing profitability.
B. Value is the tangible and intangible benefits that customers derive from consuming a good or service at a price they are willing to pay.
C. What is of value to one set of customers may not be of value to another.
D. Organizations must produce and deliver goods and/or services that are deemed to be of value to their organization.
D. Organizations must produce and deliver goods and/or services that are deemed to be of value to their organization.
Which of the following is not considered one of the four major operational decision responsibilities?
A. Inventory
B. Quality
C. Capacity
D. Management
D. Management
Which of the following statements is incorrect?
A.Purchasing is responsible for finding other organizations to serve as sources for outputs.
B. Inventory is the amount of raw material and finished material that is currently available.
C. Capacity is the maximum amount that can be transformed given current resources.
D. The supply chain refers to the network of manufacturing & service organizations with respect to your products and services.
A. Purchasing is responsible for finding other organizations to serve as sources for outputs.
Regarding careers in Operations Management, which statement is incorrect?
A. Supply Chain Analyst is involved with analyzing relationships in the production and distribution of goods and services.
B. Business Metrics Analyst is involved with the various performance measurements of a business.
C. Continuous Improvement Leader is involved in minimizing costs associated with poor quality and inefficient practices.
D. Materials Sourcing Manager is involved with finding customers for an organizations products and services.
D. Materials Sourcing Manager is involved with finding customers for an organizations products and services.
What does TDon say incorrectly about the difference between capacity and inventory levels?
A. capacity is how much a container can hold.
B. Capacity is a measure of how much a capacitor can hold.
C. Capacity is how much storage shelves can hold.
D. Capacity is how much weight a cart can carry.
C. Capacity is how much storage shelves can hold.
What are problems with following corporate-developed procedures? (Choose the best 2 answers.)
A. Corporate procedures may have been developed by someone who is not intimately familiar with the operations at the local office or facility.
B. Corporate-developed procedures are usually developed without upper management approval.
C. Corporate-developed procedures are typically not standardized across all local offices or facilities.
D. Corporate-developed procedures may not account for specific conditions present at the local office or facility.
E. Corporate-developed procedures are typically unprofessional in appearance.
- A. Corporate procedures may have been developed by someone who is not intimately familiar with the operations at the local office or facility.
- D. Corporate-developed procedures may not account for specific conditions present at the local office or facility.
How do you typically monitor service quality (e.g., cleanliness, courtesy)? (Choose the best 2 answers.)
A. Manager posts a cleanliness checklist for employees to complete and then periodically reviews checklist for compliance.
B. Manager inspects the facility at the beginning and end of the shift and tracks performance over time.
C. Manager discusses the importance of being courteous as well as his/her expectations regarding courteous behaviors during the weekly staff meeting.
D. Manager creates a set of visual displays that illustrate his/her expectations regarding the cleanliness of the facility.
E. Using a courtesy-related checklist with defined performance levels, manager periodically evaluates staff courtesy in a discreet manner. Performance is monitored over time.
-B. Manager inspects the facility at the beginning and end of the shift and tracks performance over time.
-E. Using a courtesy-related checklist with defined performance levels, manager periodically evaluates staff courtesy in a discreet manner. Performance is monitored over time.
How do you evaluate supplier quality? (Choose the best 2 answers.)
A. Send a questionnaire to the supplier's facility in order to evaluate their ability to provide a quality product in a timely manner.
B. Visit the supplier's facility to evaluate their ability to produce quality products in a timely manner.
C. Discuss their capabilities with their sales personnel to ensure that they will be able to provide a quality product in a timely manner.
D. Review performance metrics such as on-time delivery and defect levels as a means of evaluating their ability to provide a quality product in a timely manner.
- B. Visit the supplier's facility to evaluate their ability to produce quality products in a timely manner.
- D. Review performance metrics such as on-time delivery and defect levels as a means of evaluating their ability to provide a quality product in a timely manner.
Why do we care about inventory levels?
A. Our primary concern is that we do not have too much inventory in case we have quality problems or obsolescence.
B. Our primary concern is to have just enough inventory to meet customer needs while not devoting any unnecessary capital to excess inventory.
C. Our primary concern is to have sufficient inventory to meet both existing and potentially future customer needs so that we will never deplete our inventory levels on any product.
D. Our primary concern is that we do not deplete our inventory levels and lose business because we were unable to satisfy customer needs.
B. Our primary concern is to have just enough inventory to meet customer needs while not devoting any unnecessary capital to excess inventory.
What is the difference between capacity and inventory levels?
A. Capacity is how much inventory we can store on our shelves while inventory levels are how many products we have on those shelves.
B. Capacity is how many products we can make in a given time period while inventory levels are how many products we have on our shelves.
C. Inventory levels are how many products we can make in a given time period while capacity is how much inventory we can store on our shelves.
D. Inventory levels are how many layers of inventory we can place on our shelves while capacity is how many shelves we have to store these levels of inventory.
B. Capacity is how many products we can make in a given time period while inventory levels are how many products we have on our shelves.
What is a business metric?
A. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry may not necessarily use the same business metrics.
B. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry will use the same business metrics.
C. A business metric is an output device used to monitor worker performance to a set of work standards.
D. A business metric is the purposeful conversion of conventional English units of measurement to the metric system.
A. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry may not necessarily use the same business metrics.
Which of the following statements is incorrect?
A. The Kawasaki motorcycle plant in Nebraska introduced TPS to the U.S. but focused on inventory reduction with improving their processes (thus lower inventory levels caused quality problems to become more apparent).
B. The term, Lean Production, was introduced in the 1990s and was defined as "systematically eliminating waste in all production processes."
C. After World War II, the U.S. focused on mass production (low volume production of the same product at high speeds with time-intensive changeovers to different parts).
D. In the 1960s, Toyota began to make automobiles but lacked the sales volume and the supplier resources to produce products in such massive quantities.
E. Toyota perfected the Toyota Production System (TPS) and Just-in-Time (JIT) Manufacturing to create products in smaller batches and of higher quality.
C. After World War II, the U.S. focused on mass production (low volume production of the same product at high speeds with time-intensive changeovers to different parts).
Which of the following items regarding the seven forms of waste is incorrect?
A. It is wasteful to generate excess inventory as a result of running small batch sizes.
B. It is wasteful to produce more than the demand of customers.
C. It is wasteful when employees must make unnecessary steps to obtain materials.
D. It is wasteful to have excess inventory as the result of improper production planning.
E. It is wasteful for operators and machines to wait on parts or work to arrive from other operators or machines.
A. It is wasteful to generate excess inventory as a result of running small batch sizes.
Which of the following statements is incorrect?
A. Lean thinking and lean systems are used to improve processes in manufacturing and services.
B. In a service setting, setup time might be guiding a customer from the waiting room to an exam room.
C. Reducing setup time to zero would allow batch sizes of one.
D. Setup time (setting up a machine to run different parts) is productive time.
D. Setup time (setting up a machine to run different parts) is productive time.
Which of the following statements is not one of the 5 tenants of lean thinking?
A. Specify what about a product or service creates value from the company's perspective.
B. Ensure that flow within a process is simple, smooth, and error-free - thus avoiding waste.
C. Identify, study, and improve the value stream of the process for each product or service.
D. Produce only what is pulled by the customer
E. Strive for perfection
A. Specify what about a product or service creates value from the company's perspective.
Which of the following statements is incorrect?
A. The goal in studying the value stream is to eliminate the non-value-adding processing steps.
B. Value stream mapping is essentially a process flowchart of the value stream.
C. The value stream identifies all the processing steps and tasks undertaken to complete a product or deliver a service from beginning to end.
D. Value is not what the customer says but what the company says.
E. A typical value stream can include both value-added and non-value-added processing steps and tasks.
D. Value is not what the customer says but what the company says.
Which of the following statements is incorrect?
A. Lean thinking seeks to raise the inventory level to cover the problems.
B. 5S is another method for the pursuit of perfection.
C. Muda is anything that does not contribute value to the product or service.
D. The traditional approach to production is to hold inventory high enough to cover up the problems and thus keep everything flowing.
E. When these problems have been eliminated, the inventory level is lowered again to expose more problems.
A. Lean thinking seeks to raise the inventory level to cover the problems.
Which of the following statements is incorrect?
A. 4 Whys technique is an effective way to understand the root cause of the problem or understand the underlying reasons for something.
B. A pull system waits for the customer to signal a need for a good or service before producing it to fulfill that need.
C. In a push system, the goal is to run machines and processes at their full capacity to eliminate downtime.
D. A push system aims to produce goods or ensure delivery of services well in advance of demand, often according to a schedule or plan.
E. The signal from the "customer" is then sent visually up the various stages of production to signal what and when production and deliver are needed.
A. 4 Whys technique is an effective way to understand the root cause of the problem or understand the underlying reasons for something.
Which of the following statements is incorrect?
A. Seiri is translated as "to sort."
B. Seiketsu is translated as "to standardize."
C. Seiton is translated as "to straighten or set in order."
D. Seito is translated as "to shine, sweep, or clean."
E. Shitsuke is translated as "to sustain."
D. Seito is translated as "to shine, sweep, or clean."
Which of the following statements is incorrect?
A. Seiri means deciding what things should be kept or discarded so only the essential things remain.
B. Seiso means assuring cleanliness by returning things to their storage locations and removing things that do not belong.
C. Shitsuke means maintaining the other 6 S's as a habit of work.
D. Seiton means arranging essential things in a manner that supports an efficient flow of work.
E. Seiketsu means standardizing work throughout so that all employees know what their responsibilities are.
C. Shitsuke means maintaining the other 6 S's as a habit of work.
Which of the following statements is incorrect?
A. Kanban is used to control the timing and sequencing of work through a sequential process.
B. Kanban supports the tenet of producing only what is pushed by the customer.
C. Inventory levels can be reduced by reducing the size and/or number of containers.
D. Kanban is a simple and visual "parts withdrawal system" involving cards and containers to pull parts from one work center to the next when it is actually needed and not before.
E. Kanban in the Japanese language means a "marker" (or card).
B. Kanban supports the tenet of producing only what is pushed by the customer.
Which of the following statements is incorrect?
A. In lean systems, workers must have a deeper but more limited set of skills as they are expected to perform a greater complexity of tasks.
B. Cellular manufacturing refers to the redesign of work centers so that parts can move smoothly from one work center to the next.
C. In preventive maintenance, failure rates are statistically predicted and repairs occur before failures occur.
D. Cross-training of workers to operate a variety of machines is important.
E. In preventive maintenance, workers take responsibility for much of their machine maintenance.
A. In lean systems, workers must have a deeper but more limited set of skills as they are expected to perform a greater complexity of tasks.
Which of the following statements is incorrect?
A. Pay structures need to reward workers who possess a greater variety of skills.
B. With integrated supplier programs, long-term strategic relationship (comprehensive commitment)
C. With integrated supplier programs, family-of-parts sourcing (buy same types of parts from only one or two suppliers)
D. With supplier partnerships, suppliers are often given delivery dates rather than shipment times.
D. With supplier partnerships, suppliers are often given delivery dates rather than shipment times.
Henry Ford could build Model T's faster than other companies at that time. How much faster could he build them?
A. 15 times faster
B. 10 times faster
C. 2 times faster
D. 20 times faster
E. 5 times faster
B. 10 times faster
Who invented the assembly line process?
A. William Perkins
B. Felix Hoffman
C. Andrew Carnegie
D. Ransom Eli Olds
E. Henry Ford
D. Ransom Eli Olds
Who developed the JIT system?
A. Kaoru Ishikawa
B. Sakichi Toyoda
C. Genichi Taguchi
D. Shigeo Shingo
E. Taiichi Ohno
E. Taiichi Ohno
What heijunka?
A. A technique to facilitate just-in-time production
B. The practice of vetting suppliers
C. The third step in the 5S process
D. An approach to maximizing machine operating efficiency
E. A type of fishing vessel
A. A technique to facilitate just-in-time production
From the LeanConsultingWorks video, what should companies always be doing?
A. Employing JIC systems
B. Practicing celluloid manufacturing
C. Using Kankan
D. Working toward perfection
E. Rigorously adhering to the 6S philosophy
D. Working toward perfection
In the Poka Yoke video, what was he doing in the example?
A. Ensuring that a product was not damaged during handling
B. Labeling a part to prevent misuse
C. Creating a testing machine to 100% check electric parts
D. Applying 2 labels to a pole
E. Painting a strip on a rod
D. Applying 2 labels to a pole
In the 5S video, what is the person carrying in the sketch?
A. A table
B. A chair
C. A drill
D. A box
E. A picture
B. A chair
In the Kanban video, what color square does the color machine produce?
A. Red
B. Green
C. Blue
D. Yellow
E. Brown
B. Green
In the cellular manufacturing example, how far did parts initially travel before the floor layout was changed?
A. Nearly a mile
B. Between 400 and 600 feet
C. Around 200 feet
D. Over 2 miles
E. Approximately 150 yards
A. Nearly a mile
In the Deming video, Deming said: "Everybody has a customer in any organization be it a ..." What was the remainder of this statement?
A. dry cleaners, a retail store, a lumber yard, a telephone company ...
B. shoe store, a car maker, a football team, ...
C. school, a business, a farm, a dairy ...
D. factory, a car dealership, an insurance agency ...
E. laundry, a bank, a newspaper, manufacturing, education ...
E. laundry, a bank, a newspaper, manufacturing, education ...
Which of the following statements are incorrect (Choose 2)?
A. In Chapter 7, three side-by-side images can be found in which the water level is lowered. The meaning of this analogy is that as the water level is lowered, problems can be uncovered and eliminated.
B. A push system of processing goods and services through a facility is usually inferior to a pull system. A push system is considered inferior because it promotes an unnecessary buildup of inventory.
C. In a typical value stream, NVA process steps often exist. At one point in time, these NVA steps were deemed necessary for a variety of reasons. These NVA steps are now unnecessary but no one ever removed them from the processing steps.
D. Formal problem-solving methods are wasteful in that it expends unnecessary time and resources to solve a problem.
-A. In Chapter 7, three side-by-side images can be found in which the water level is lowered. The meaning of this analogy is that as the water level is lowered, problems can be uncovered and eliminated.
-D. Formal problem-solving methods are wasteful in that it expends unnecessary time and resources to solve a problem.
In the Juran video, there was a slide that read: "Most failures were due to ...". What did the rest of the slide state?
A. incompetent management.
B. a poor choice of strategy.
C. an emphasis on price over quality.
D. a failure to take corrective action.
E. short-sighted thinking.
B. a poor choice of strategy.
Which of the following statements are incorrect (Choose 2)?
A. Having suppliers involved with the design stage of a product is advantageous. It provides an opportunity for having multiple suppliers compete for the same business.
B. With lean systems, suppliers may make several deliveries a day to meet production needs (as compared to weekly or even monthly deliveries). The benefit of these frequent deliveries is that your firm receives only the parts needed in the immediate future rather than having to incur a variety of inventory costs.
C. With approved suppliers, the purchased parts can be received and inspected in a simplified manner. A primary reason is that the personnel from your factory are sent to your suppliers to inspect the product prior to shipment.
D. Cross-training of workers to operate a variety of machines is important. It allows a firm to shift workers to other machines as workload demands change.
E. Having multiple suppliers provide the same part is an outdated practice. The logic behind this approach was to ensure parts would be available if something happened to a supplier's ability to deliver parts (e.g., fire, flood, union strike).
- A. Having suppliers involved with the design stage of a product is advantageous. It provides an opportunity for having multiple suppliers compete for the same business.
-C. With approved suppliers, the purchased parts can be received and inspected in a simplified manner. A primary reason is that the personnel from your factory are sent to your suppliers to inspect the product prior to shipment.
Regarding Deming's Philosophy of Management, which of the following statements is incorrect?
A. Improve constantly and forever the system of production and service.
B. Remove barriers to pride of workmanship. People are eager to do a good job and distressed when they can't. Too often, misguided supervisors, faulty equipment, and defective materials stand in the way.
C. End the practice of awarding business to the supplier with the lowest price regardless of quality.
D. Cease dependence on mass inspection.
E. Create consistency of purpose for improvement of product and service.
E. Create consistency of purpose for improvement of product and service.
Regarding Deming's Deadly Diseases, which of the following statements is incorrect?
A. An emphasis on short-term profits promotes substantial changes in production and quality.
B. Evaluation of employee performance often destroys teamwork, nurtures rivalry, and builds fear.
C. Running a company on visible figures alone is problematic.
D. Job-hopping managers never understand the companies that they work for and are never there long enough to effect long-term changes.
A. An emphasis on short-term profits promotes substantial changes in production and quality.
Which of the following statements are incorrect (Choose 2)?
A. A real danger in quality cost programs lies in finding and collecting a small portion of the costs involved and having it represented as the total.
B. Identifying and collecting quality costs must be comprehensive and practical to be effective.
C. Holding the controller responsible for quality cost measurement will provide the stamp of financial validity to the program, assure that collection costs remain within practical limits, and promote effective teamwork between the controller and the marketing function.
D. In many companies, departments that cause inefficiencies in areas besides their own frequently get off scot free because the problems they create, and their responsibility for them, are never properly identified.
E. The collection and reporting of quality costs should not be designed in conjunction with the basic company cost accounting system.
-C. Holding the controller responsible for quality cost measurement will provide the stamp of financial validity to the program, assure that collection costs remain within practical limits, and promote effective teamwork between the controller and the marketing function.
-E. The collection and reporting of quality costs should not be designed in conjunction with the basic company cost accounting system.
Which of the following statements is incorrect?
A. Prevention costs may include such activities as SPC charting by the production operator, a self-checking machine tool, or automatic process control equipment.
B. Failure costs are the costs of all activities specifically designed to prevent poor quality in products or services.
C. External failure costs occur after delivery or shipment of the product and during or after furnishing of a service to the customer.
D. Internal failure costs occur prior to delivery or shipment of the product or the furnishing of a service to the customer.
B. Failure costs are the costs of all activities specifically designed to prevent poor quality in products or services.
Which of the following statements are incorrect (Choose 2)?
A. Quality cost elements are the detailed functions, tasks, or expenses which when properly combined, make up the quality cost category.
B. A time lag normally exists between quality measurements (inspection data) and quality cost data.
C. The elements making up the quality cost categories will be the same from industry to industry.
D. Quality costs are used to support improvement after-the-fact and to verify results before-the-fact.
- C. The elements making up the quality cost categories will be the same from industry to industry.
-D. Quality costs are used to support improvement after-the-fact and to verify results before-the-fact.
Regarding Feigenbaum's Benchmarks of Total Quality, which of the following statements is incorrect?
A. Quality and cost are a difference, not a sum.
B. Quality is what the customer says it is.
C. Quality is a company-wide process.
D. Quality is implemented with a total system connected with customers and suppliers.
E. Quality is the most cost-effective, least capital-intensive route to productivity.
A. Quality and cost are a difference, not a sum.
Regarding Deming, which of the following statements is incorrect?
A. In the early 1900s, his father moved his family from Sioux Falls, Iowa to Cody, Wyoming.
B. In 1924, he received a Ph.D. in physics at Yale (not statistics).
C. In 1947, he was asked to help with the Japanese census during U.S. occupation.
D. Because of his tremendous help, the Japanese established the Deming Prize in 1951.
E. In 1917, Deming began his education at the University of Wyoming (graduated in 1921).
A. In the early 1900s, his father moved his family from Sioux Falls, Iowa to Cody, Wyoming.
What is the fifth (and last step) in a quality cost program?
A. Establish a quality cost measurement system.
B. Develop a suitable long-range trend analysis.
C. Establish annual improvement goals for total quality costs.
D. Develop short-range trend analyses with individual targets to meet annual improvement goals.
E. Monitor progress against each short-range target and take corrective action as needed.
E. Monitor progress against each short-range target and take corrective action as needed.
Which of the following statements is incorrect?
A. Appraisal costs are costs associated with measuring, evaluating, or auditing products or services to assure conformance to quality standards and performance requirements.
B. Appraisal costs include the costs of inspections, audits, field failure reports, equipment calibration, and associated supplies and materials.
C. A minimum quality measurement system should include appraisal results from all key areas.
D. Prevention costs are an investment in the discovery, incorporation, and maintenance of defect prevention disciplines for all operations affecting the quality of product or service.
E. Appraisal costs are the costs resulting from products or services not conforming to customer needs.
E. Appraisal costs are the costs resulting from products or services not conforming to customer needs.
Which of the following statements are incorrect (Choose 2)?
A. Any cost that would have been expended if quality was perfect contributes to the cost of quality.
B. Significant chunks of quality costs are normally recognized simply because most accounting systems are designed to identify them.
C. Quality costs are the total of the cost incurred by investing in the prevention of nonconformances to requirements, appraising a product or service for conformance to requirements, and failure to meet requirements.
D. Quality cost measurements defines and quantifies costs that are directly affected, both positively and negatively, by the quality management program, thus allowing quality to be managed more effectively.
E. A quality cost program can provide specific warning against oncoming, dangerous, quality related, financial situations.
-A. Any cost that would have been expended if quality was perfect contributes to the cost of quality.
-B. Significant chunks of quality costs are normally recognized simply because most accounting systems are designed to identify them.
Regarding Deming's Philosophy of Management, which of the following statements is incorrect?
A. The job of a supervisor is not to tell people what to do or to punish them but to lead. Leading consists of helping people do a better job.
B. Eliminate slogans, exhortations, and targets for the workforce. Slogans are based on the supposition that employees could do better if they tried.
C. Institute training. Too often, workers have learned their job from another worker who was never trained properly or are forced to follow intelligible instructions.
D. Drive out fear. People are afraid to point out problems for fear they will be blamed for the problem.
E. Break down barriers between staff areas. Often different departments are competing with each other or have goals that conflict.
C. Institute training. Too often, workers have learned their job from another worker who was never trained properly or are forced to follow intelligible instructions.
Regarding the strategy for using quality costs to facilitate improvement, which of the following statements is incorrect?
A. Continuously evaluate and redirect prevention efforts to gain further improvement
B. Take direct attack on failure costs in an attempt to drive them to zero.
C. Reduce prevention costs according to results achieved
D. Invest in the "right" prevention activities to bring about improvement.
C. Reduce prevention costs according to results achieved
Which of the following statements are incorrect (Choose 2)?
A. In a Kanban system, parts are kept in small containers and only a specific number of these containers are provided. The primary purpose of this practice is to assure that the containers are easy to store in inventory.
B. A fundamental importance of Seiton is to take the essential parts and tools needed for an operation and arrange them in an orderly and efficient manner so that mistakes are not made and work can be formed as productively as possible.
C. Seiso involves the creation of a clean workspace. It promotes good work habits.
D. A fundamental importance of Seiri is to keep only those things that are essential in order to minimize the likelihood of using incorrect parts and/or tools.
E. In a Kanban system, the final assembly schedule is the only schedule allowed because the other departments simply produce parts that are sent to inventory.
-A. In a Kanban system, parts are kept in small containers and only a specific number of these containers are provided. The primary purpose of this practice is to assure that the containers are easy to store in inventory.
-E. In a Kanban system, the final assembly schedule is the only schedule allowed because the other departments simply produce parts that are sent to inventory.
Which of the following statements is incorrect?
A. Failure costs cannot be progressively reduced without a parallel system to assist in tracking down the defect causes for elimination.
B. Without a defect or problem reporting system, only the most obvious problems can be pursued.
C. Almost any company function can be responsible for mistakes which cause the redoing of work already accomplished. This is the essence of the appraisal cost of quality.
D. For service companies, failures are that portion of operating costs caused by nonconformance to performance standards.
E. The bulk of failure costs are typically hidden below surface.
C. Almost any company function can be responsible for mistakes which cause the redoing of work already accomplished. This is the essence of the appraisal cost of quality.
Regarding the steps involved in the implementation of a quality cost program, which statement is incorrect?
A. A specific operational area must be exposed in sufficient detail to show how actual quality costs can be eliminated through analysis and corrective action.
B. A pilot program is recommended because it will prove the ability of the system to produce cost-saving results.
C. To assure a high probability of success, the unit selected for the pilot program should be as atypical of the company's operation as possible.
D. It is common to find initial quality cost estimates of more than 20% of sales (can be reduced to as little as 2-4% of sales)
C. To assure a high probability of success, the unit selected for the pilot program should be as atypical of the company's operation as possible.
What is a business metric?
A. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry will use the same business metrics.
B. A business metric is the purposeful conversion of conventional English units of measurement to the metric system.
C. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry may not necessarily use the same business metrics.
D. A business metric is an output device used to monitor worker performance to a set of work standards.
C. A business metric is an important measurement used by a firm to monitor their success. Different firms within the same industry may not necessarily use the same business metrics.
Which of the following statements is incorrect?
A. In a push system, the goal is to run machines and processes at their full capacity to eliminate downtime.
B. A pull system waits for the customer to signal a need for a good or service before producing it to fulfill that need.
C. A push system aims to produce goods or ensure delivery of services well in advance of demand, often according to a schedule or plan.
D. 4 Whys technique is an effective way to understand the root cause of the problem or understand the underlying reasons for something.
E. The signal from the "customer" is then sent visually up the various stages of production to signal what and when production and deliver are needed.
D. 4 Whys technique is an effective way to understand the root cause of the problem or understand the underlying reasons for something.
Which of the following statements is incorrect?
A. Seiton means arranging essential things in a manner that supports an efficient flow of work.
B. Seiso means assuring cleanliness by returning things to their storage locations and removing things that do not belong.
C. Seiri means deciding what things should be kept or discarded so only the essential things remain.
D. Seiketsu means standardizing work throughout so that all employees know what their responsibilities are.
E. Shitsuke means maintaining the other 6 S's as a habit of work.
E. Shitsuke means maintaining the other 6 S's as a habit of work.
Which of the following statements is incorrect?
A. Every decision is cross-functional in nature.
B. No matter what you do, you will interact with the operations function
C. Non-profit agencies, service industries, and government services are not managed by operations managers.
D. Operations management deals with the production of goods and services.
C. Non-profit agencies, service industries, and government services are not managed by operations managers.
Feigenbaum indicates that quality and cost are a sum, not a difference (Ch08). Which statement best explains this notion?
A. Less quality necessarily leads to a lower price.
B. Better process and product quality often results in a firm being more price competitive.
C. Less quality necessarily leads to a higher price.
D. Better quality necessarily leads to a higher price.
B. Better process and product quality often results in a firm being more price competitive.
One of Deming's Deadly Diseases (Ch08), some companies look to increase quarterly dividends. How does this practice tend to undermine quality and productivity?
A. This practice tends to undermine both quality and productivity by emphasizing long-term projects that will have a lasting impact on quality and productivity.
B. This practice tends to undermine quality while enhancing long-term productivity by emphasizing cautious spending on all production items.
C. This practice tends to undermine both quality and productivity by emphasizing short-term savings instead of focusing on longer-term investments that will ultimately benefit quality and productivity.
D. This practice tends to undermine productivity while enhancing quality by ensuring only quality-made products are shipped to the customer. Defects made are set aside until the next quarter begins.
C. This practice tends to undermine both quality and productivity by emphasizing short-term savings instead of focusing on longer-term investments that will ultimately benefit quality and productivity.
Crosby advocates for management commitment when implementing quality improvement programs (Ch08). Which statement best explains this notion?
A. Upper management must grant approval for quality improvement programs to be successful.
B. Upper management must require lower management to be active members of all quality improvement teams.
C. Upper management must be active members of all quality improvement teams.
D. Upper management must actively support the quality improvement process.
D. Upper management must actively support the quality improvement process.
Deming believes that leading consists of helping people do a better job (Ch08). Which one of the following statements best describes this sentiment?
A. Leading involves identifying employees' strengths and weaknesses so they can be assigned to jobs that match their abilities.
B. Leading involves overseeing people's work to ensure that they do a better job.
C. Leading involves helping others perform their job-related tasks.
D. Leading involves helping employees by eliminating obstacles that hinder their work performance.
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